India has further delayed the implementation of higher tariffs on agricultural imports from the U.S. to Nov. 2, according to a government order that put off for a second time retaliatory action against U.S. import tariffs on steel and aluminum.
India’s decision to further delay comes as the two countries negotiate a package to remove trade frictions over a range of items, Reuters reported.
Angered by Washington’s refusal to exempt it from new steel and aluminum tariffs, New Delhi decided in June to raise the import tax from August 4 on some U.S. products, including almonds, walnuts and apples. The Indian government later delayed imposing the tax until Sept 18, but with negotiations ongoing it has now decided to postpone again.
Earlier this month India and the U.S. signed an accord on secure military communication. The agreement had been stalled for years because of India’s concerns that it would open up its communications network to the U.S. military.
Separately, Trump escalated his trade war with China on Monday, imposing 10% tariffs on about US$200 billion worth of Chinese imports.